Fred, a financial manager, evaluates 3 prospectivveinvestments, A B CC. The firm

Question

Fred, a financial manager, evaluates 3 prospectivveinvestments, A B CC. The firm currently earns 12% on itsinvestments, which have a risk index of 6%. The expected return andexpected risk of the investments are as follows: Investment Expected Return Expected Risk Index A    14%                               7% B      12                                   8    C      10                                  9 If Fred were risk - indifferent, which investment would heselect? Explain why. Fred, a financial manager, evaluates 3 prospectivveinvestments, A B CC. The firm currently earns 12% on itsinvestments, which have a risk index of 6%. The expected return andexpected risk of the investments are as follows: Investment Expected Return Expected Risk Index A    14%                               7% B      12                                   8    C      10                                  9 If Fred were risk - indifferent, which investment would heselect? Explain why.

Explanation / Answer

I thought risk indifferent saw very little change, so the answer would be C.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.